Question
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. April 2
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. April 2 Purchased $4,400 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. April 3 Paid $340 cash for shipping charges on the April 2 purchase. April 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $850. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. April 18 Purchased $8,100 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. April 21: After negotiations over scuffed merchandise, received from frist a $500 allowance allowance toward the 8100 owed on the april 18 purchase. April 28: sent a check to frist paying the april 18, net of the allowance and the discount.
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